Channel assembly means the boxes are shipped only partly
assembled and the channel resellers complete the assembly,
adding options (memory, disk drives, sound, etc) as
necessary. They could assemble to their own inventory
or assemble-to-order from customer sales.
The idea is that channel flexibility is increased, inventory
risk is reduced, and the resellers add more value. Some
profits get shifted to the reseller but CPQ lowers unit
costs.
Quality control is an issue, as are reseller expertise,
resources, and sales models. Some of these issues are
supposed to be addressed by reducing the number of channels.
I think the jury's out, but maybe someone has better info. |
